Market Perspectives – September 30, 2021

Ocean Freight Comments

Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:  Freight markets are a crazy as the traditional sea shanty sailors have sung for centuries. All sectors continue to follow the Capes, which have now reached 13-year highs. The Capesize market is putting a big squeeze on the short players and the goal is to see how high the market can be pushed. Capesize FFA index rates have already passed $65,000/day and the market is pushing for more. The all-time high was $300,000/day back in May of 2008. So, are we headed for 2008 all over again? Or are we in for a big correction once the shorts have been forced out?

October Capesize vessels reached $65,000 before settling back to $63,000 at the close. Panamax FFA paper gained support from the Capes and ended the day at $36,250 for October.

There are now 8 of the 9 previously operating New Orleans export grain facilities back online. There are 68 grain vessels currently in NOLA and FOB vessel export grain values at Mississippi River facilities for October still remain uncertain.